The Milimani Commercial Court has dismissed a Ksh.6.8 million claim by businessman Omar Salim Baslum against Tunasco Insaat Anonim Sirketi Co. Limited over alleged supply of fuel, hydraulic oil, and other petroleum products. Chief Magistrate Thomas Nzyoki dismissed the suit after finding that Baslum failed to prove that the goods were delivered to Tunasco or that a contractual relationship existed between the parties.
Baslum had sued Tunasco seeking Ksh.6,810,626.50, claiming the company ordered hydraulic oil, diesel, and petrol between April 2017 and October 2018. According to his claim, the products were supplied through various deliveries and invoiced at Ksh.9,810,626.50. He said Tunasco subsequently paid Ksh.3 million on July 10, 2018, leaving an outstanding balance of Ksh.6,810,626.50.
Baslum relied on a December 24, 2021 letter, which he argued amounted to an admission by Tunasco that the debt existed. However, Tunasco denied ever conducting business with Baslum and argued that the alleged debt did not exist. The court found that the documents presented by Baslum did not establish that the goods were delivered to Tunasco.
The court noted that properly received and acknowledged delivery notes would have provided sufficient evidence that ownership of the goods had passed from the seller to the buyer. However, the documents presented by Baslum entirely belonged to him and did not bear evidence of delivery and transfer of property in the goods to Tunasco.
The magistrate rejected Baslum's argument that Tunasco's December 2021 letter amounted to an admission of the debt. Nzyoki stated that the letter was not an admission and that Baslum's counsel submissions urging the court to find that the letter was an admission were misleading and unfounded.
The court further found that Baslum had failed to establish privity of contract with Tunasco. Nzyoki noted that a claim for the price of goods requires proof that the goods were supplied and ownership transferred to the buyer for an agreed or reasonable price. The court consequently dismissed the suit and awarded costs to Tunasco.
Following the ruling, Tunasco said it intends to pursue damages and other lawful remedies against Baslum and Abdulhakim Omar over what it described as substantial commercial losses and reputational harm arising from the litigation. The company said the dispute had affected business opportunities, commercial relationships, and its standing with business partners.
Key points
- The Milimani Commercial Court dismissed a Ksh.6.8 million claim by businessman Omar Salim Baslum against Tunasco Insaat Anonim Sirketi Co. Limited over alleged supply of fuel, hydraulic oil, and other petroleum products.
- The court found that Baslum failed to prove that the goods were delivered to Tunasco or that a contractual relationship existed between the parties.
- Tunasco intends to pursue damages and other lawful remedies against Baslum and Abdulhakim Omar over substantial commercial losses and reputational harm arising from the litigation.
